ASEAN Demographic and Mobile Smart Phone Market Analysis

Indonesia, Malaysia, Philippines, Thailand and Vietnam

Presented by: Yuric Hannart Private and Confidential

• Population by number: 604.8 million •Estimated GDP of ASEAN 2012 : USD 2.4 trillion, 9th largest economy •194 million new internet users will come online between 2011 and 2020. 91 million alone in Indonesia. • By 2020, those under 30 will make up 48% of the South East Asia population • 5 Most popular activities on smart phones

1.Text messaging 2.Accessing the Internet (50% raising to 62%) 3. Reading email 4.playing games and 5. Chat

• Smartphone sales up 78% in Southeast Asia, account for just 25% of total •Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia and the Philippines — which together, between July 2011 and June 2012, sold a cumulative $13.7 billion worth of phones (118 million devices sold)

ASEAN REGIONAL OVERVIEW

Country At Large: Indonesia

• Population by number: 250 million people (July 2012 est.)

•Top five cities by population: - Jakarta: 9.1 million - Surabaya: 2.5 million - Bandung: 2.4 million - Medan: 2.1 million - Bekasi : 1.2

•Demographic information: Average age: Total population: 28.2 years Male: 27.7 years Female: 28.7 years (2011 est.)

•GDP(2012) : $880 billion USD (GDP growth 6.2% ), per capita $US 3,420

Country At Large: Indonesia (cont.)

Indonesia is in fact the fourth largest country on earth (behind just China, India, and the US)

• Total number of mobile subscriptions / subscribers: 220 million

(Telkomsel, Indosat and XL accounted for 85% of the market) • Percentage of mobile penetration: 92% • Number / percentage of smart phones v/s feature phones : 20% • Total number of Internet users : 55 million • Percentage of Internet penetration : 23% • Percentage of mobile Internet users : 29%

‡ Most of the apps are :

•Games

•Facebook is the fourth largest market

•Twitter counts Jakarta as its number one city (55% are retweeted)

‡ Growth is driven by affordable smart phones in the range of $100 – 200

Country At Large: Indonesia (cont.)

Over 60 million mobile phones will be purchased in Indonesia in 2013.

Country At Large: Indonesia (cont.)

From Q4 2011 to Q1 2012

Country At Large: Malaysia

• Population by number: 29.2 million

•Top five cities by population: - Kuala Lumpur: 1.6 million - Ipoh: 441,628 - Johor Bahru: 441,628 - Kuantan: 356,153 - Seremban: 317,813

•Demographic information: Average age: Total population: 26.8 years Male: 26.7 years Female: 27 years (2011 est.)

•GDP(2012) : $304 billion USD (GDP growth 5.6% ), per capita $US 9,800

Country At Large: Malaysia (cont.)

Sales of smart phones in the region rose 78 percent year-on-year in ASEAN region, according to new figures from GfK

• Total number of mobile subscriptions / subscribers: 35.7 million

(Maxis – 14 million, Celcom – 12 million and DiGi – 10 million) • Percentage of mobile penetration: 124% • Number / percentage of smart phones v/s feature phones : 27% • Total number of Internet users : 17.5 million • Percentage of Internet penetration : 61.7% • Number of mobile Internet users : 10 million

‡ Most of the apps are

Application software : 41.8%

Ringtones: 33.8%

Games: 32.8%

‡ Malaysia Communication and Multimedia Corporation (MCMC) is proposing a rebate MYR200 ($65 US) rebate on selected 3G smart phones that cost no more than MYR500 ($163US).

Country At Large: Malaysia (cont.)

A Frost & Sullivan report last July stated that mobile social networking will cause smartphone sales to "skyrocket" in ASEAN, accounting for 54 percent of all devices sold in the region by 2015.

Country At Large: Malaysia (cont.) From Q4 2011 to Q1 2012

Country At Large: Philippines

• Population by number: 103 million

•Top five cities by population: - Quezon City: 2.7 million - Manila: 1.6 million - Caloocan: 1.4 million - Davao City: 1.3 million - Cebu City: 800,000

•Demographic information: Average age: Total population: 22.9 years Male: 22.4 years Female: 23.4 years (2011 est.)

•GDP(2012) :$250 billion USD (GDP growth 6.5% ), per capita $2,470

Country At Large: Philippines (cont.)

Smartphone penetration in the country at the end of March 2012 was pegged at 29 percent, less than half the penetration rate in Indonesia.

• Total number of mobile subscriptions / subscribers: 90 million (Philippines Long Distance Telephone Company (PLDT) – 66.1 million; Globe

Telecom – 31 million)

• Percentage of mobile penetration: 99% • Number / percentage of smart phones v/s feature phones : 20/80 • Total number of Internet users : 30 million • Percentage of Internet penetration : 30% • Percentage of mobile Internet users : 20%

‡ Most popular apps aside from Facebook and Twitter:

•Simsimi; Instagram; Tumblr; DrawSomething; Temple Run; and Skype

‡ The average price of smart phones in Philippines has dropped 23 percent from last year’s US$317 to US$244

Country At Large: Philippines (cont.)

Smartphone sales grew the most in the Philippines (up 326 percent year-on-year) as the country’s share of Southeast Asia’s total sales rose to 24 percent, from 9 percent in 2011.

Country At Large: Philippines (cont.) From Q4 2011 to Q1 2012

Country At Large: Thailand

• Population by number: 67 million (July 2012 est.)

•Top five cities by population: - Bangkok: 5.7 million - Nakhon Ratchasima: 2.5 million - Ubon Ratchathani: 1.8 million - Khon Kaen: 1.7 million - Chiang Mai: 1.6 million

•Demographic information: Average age: Total population: 34.2 years Male: 33.3 years Female: 35.2 years (2011 est.)

•GDP(2012) :$366 billion USD (GDP growth 6.4% ), per capita $5,210

Country At Large: Thailand (cont.)

60% of Thais would be happy to do all their Internet surfing on a mobile device.

• Total number of mobile subscriptions / subscribers: 77 million (Advanced Info Service AIS– 37.1 million; DTAC (Telenor)– 26.6 million ; and True Move – 21.5 million)

• Percentage of mobile penetration: 115% • Number / percentage of smart phones v/s feature phones : 25% • Total number of Internet users : 25 million • Percentage of Internet penetration : 37.3% • Number of mobile Internet users : 1 million

‡ 758,000 smart phones sold in the first three months of 2012. ‡ Smart phones in the range of USD 150 - 250 are the most saleable with over one in two smart phones coming from this segment, the pricier models above USD500 have maintained their market share of 18 percent in the latest quarter, translating to an overall contribution of almost 40 percent in the country’s smart phone sales.

Country At Large: Thailand (cont.)

Smart phone sales in Thailand gather pace with over 2.87 million sold in the first four months of 2013

Country At Large: Thailand (cont.) From Q4 2011 to Q1 2012

Country At Large: Vietnam

• Population by number: 91 million (July 2012 est.)

•Top five cities by population: - Ho Chi Minh City: 7.1 million - Ha Noi : 6.5 million - Thanh Hoa Province: 3.4 million - Nghệ An Province: 2.9 million - Đồng Nai Province: 2.5 million

•Demographic information: Average age: Total population: 27.8 years. Males: 26.8 years. Females: 28.9 years.(2011 est)

•GDP(2012) :$142 billion USD (GDP growth 5.0% ), per capita $1,410

Country At Large: Vietnam (cont.)

77 percent of consumers expect to conduct mobile commerce in the next 12 months – a 36 percent increase from today.

• Total number of mobile subscriptions / subscribers: 180 million Sim card sold, with over 60 million active. (Vietel– 43.7 million or 36.1% ; Mobifone – 34.7 million or 28.7% ; and Vinaphone–)

• Percentage of mobile penetration: 174% • Number / percentage of smart phones v/s feature phones : < 10% • Total number of Internet users : 30 million • Percentage of Internet penetration : 30% • Number of mobile Internet users : estimated to be more than 500,000

‡ While all phone market just increase slowly around 2.4% and fixture phone down 12.54%, smart phone still gets high growth YoY with 41% 3Q2012/3Q2011

‡ Vietnam mobile users ready to pay $186 on average for their next phone

Country At Large: Vietnam (cont.)

55 percent of Vietnamese would be happy to do all their Internet surfing using a mobile device.

Country At Large: Vietnam (cont.) From Q4 2011 to Q1 2012

Opportunities and Challenges

Opportunities: • Youthful population is more open to new technology • Smart phone provides Internet connection much cheaper than fixed line • Economic growth requires more connection and access to the Internet • Smart phone penetration is still only 25% or less for the region

Challenges: • Diverse cultures require different marketing approaches • Multiple carriers with different standards of GSM • Content must be localized • Product must be supported locally

How Can I help?

Yuric’s Background: • Over 15 years of experience in technology beginning with Bank of America and rode the wave of Silicon Valley

technological revolution. Highlights of some of the first’s : A. Principal product manager for Intuit QuickBooks ‘payroll product. The

group was less than 100 people. B. Implement Fair Usage Policy and DSL for Netcom for dial up users C. Launch the first hand held Internet device with Palm (Palm VII). Signed

deal with NTT Docomo and launched the first Internet phone in Japan. D. Founded the first SMB solution for communication and collaboration with

built in backup, automatic update and perimeter defense E. Launched the first prepaid payment solution in Vietnam

• Entrepreneurial, strategic thinker, product launches, go-to-market, software development, business development, and marketing.

• You can Google me or click on the link for more information http://www.linkedin.com/profile/view?id=113508&trk=nav_responsive_tab_profile

Demand for Smart Phone (Survey was asked in late 2011)

Companies are moving in to this market (2012)

Nokia launched the colorful, inexpensive Lumia 620 in Thailand • The handset will be available for 8250 Baht ($275). Unveiled last year, the Lumia

620 runs Windows Phone 8 and sports a dual-core chip.

1 GHz dual-core Snapdragon processor 3.8 inch LCD display (800 x 480) with ClearBlack technology

8GB internal memory expandable with microSD 512 MB of RAM

5 megapixel camera 1300 mAh Battery